Quantitative easing by the Fed refers to
A) the creation of bank reserves by engaging in large-scale open market operation at very low interest rates.
B) decreasing the money supply during a recession to prevent inflation.
C) selling private securities issued by the Fed.
D) lowering the federal funds rate while increasing the discount rate.
E) lowering the required reserve ratio to zero percent.
A
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In the above, a positive relationship between price and quantity is shown in
A) Figure A. B) Figure B. C) both Figure A and Figure B. D) neither Figure A nor Figure B.
Which one of the following is an example of a normative statement?
A) A digital camera costs more than a disposable camera. B) Most digital cameras sold in the United States are imported from other countries. C) A camera makes a good wedding gift. D) More people will buy digital cameras as their prices decline.